*How can an address sent to itself? and why?
The first image clearly shows the
consolidation of the inputs. Right now, fees are low so turning 4 inputs into one unspent output is a good idea. In the future, the owner of that address will pay a much lower transaction fee since the transaction size will be smaller. The more inputs you have, the higher the fee you will pay. You can play with
this website to see how the fees change based on your transaction size. 'x sat/byte' parameter changes depending on the unconfirmed transactions.